South American Silver Corp. (TSE:SAC) reports the release of its unaudited interim consolidated financial statements for the three and six months ended June 30, 2011 and the related management’s discussion and analysis of financial position and results of operations.
The press release is quoted as saying:
The Company is also pleased to provide an update on the Malku Khota silver-indium project in Bolivia and the Escalones copper-gold project in Chile. As at June 30, 2011, the Company had working capital of U.S.$32.6 million, including cash and cash equivalents of U.S.$32.9 million. With these funds in place, the Company is in a very strong financial position to accelerate the advancement of its Malku Khota project toward feasibility, and its Escalones project to the resource definition stage. Further details including the full financial statements and information on each of the Company’s projects, including the resource estimate at Malku Khota, are available on the Company’s website at www.soamsilver.com and on SEDAR at www.sedar.com.
South American Silver’s President and CEO, Greg S. Johnson says:
On March 31st, the Company announced results from an updated Preliminary Economic Assessment (“PEA”) for the Malku Khota silver-indium-gallium project. The technical report was filed in its entirety on May 13th, 2011. Results of the PEA more than doubled estimated mine production levels for the first 5 years of production from the 2009 PEA to over 13.2 million ounces of silver per year, at a cash cost of $2.94 per ounce net of by-product credits at “base case” 3 year average metal prices, putting it in the lower quartile of producer costs. Additionally it more than doubled indium production to 80 tonnes of indium per year and reported the first projected production figures for gallium at 15 tonnes/year. With further resource optimization there remains excellent potential to extend the mine life beyond 15 years or to expand annual production levels further.